Global Economy & Geopolitics 2025: Challenges and Opportunities

The inauguration of Donald Trump is imminent. The geopolitical landscape will change and the world order is facing a shift towards multipolar structures. Trade tariffs and protectionist measures are straining global relations, while regional conflicts – from Ukraine to Taiwan to Syria – are putting international stability to the test.
As a result, the global economy will see moderate growth of around 2.9% in 2025 – characterised by regional differences. Emerging economies such as India and South-East Asia are driving the global upturn, while established economies such as Europe and the USA are facing structural hurdles. Germany in particular is struggling with productivity weaknesses, which is jeopardising its status as the world’s leading exporter.
The world is more closely networked than ever – an advantage, but also a risk. Events such as the global IT breakdown in 2024 show how vulnerable our digital infrastructure is. Greater resilience and innovative solutions are needed here.
Despite many challenges, an economic upturn could emerge in Europe if inflation rates and interest rates fall. However, this does not yet apply to Germany and a fragmented EU and domestic political problems in countries such as France and Germany raise questions about the future of the continent.
Technology remains a key issue: the race for digital dominance, cyber security and AI ethics requires global standards and cooperation.